Top rice importers are under investigation by the House of Representatives for allegedly inflating prices, despite tariff reductions intended to make rice more affordable for Filipinos.
The House’s Quinta Committee, also known as the Murang Pagkain Super Committee, revealed that there were suspicious practices and potential collusion in the rice importation sector, leading lawmakers to believe these factors were behind the price hikes.
“The committee focused on top importers because there were clear signs of speculation in the rice import market, such as swelling commercial inventories, delays in withdrawals by importers, and imports surpassing USDA (United States Department of Agriculture) projections,” said Albay Rep. Joey Salceda, chairman of the mega panel.
The top importers under investigation included Bly Agri Venture Trading, Atara Marketing Inc., Orison Free Enterprise Inc., Macman Rice and Corn Trading, King B Company, Sodatrade Corp., Lucky Buy and Sell, Vitram Marketing Inc., Nan Stu Agri Traders, and RBS Universal Grains Traders Corp.
Corporate records from the Securities and Exchange Commission (SEC) revealed interlocking directorships between RBS Universal Grains Traders Corp. and Sodatrade Corp., which could facilitate coordinated business strategies and anti-competitive behavior.
However, the committee faced a challenge in investigating Bly Agri Venture Trading, Macman Rice and Corn Trading, King B Company, Nan Stu Agri Traders, and Lucky Buy and Sell, as these companies were not registered with the SEC.
Despite the issuance of Executive Order No. 62 by President Ferdinand Marcos Jr., which mandated the reduction of rice tariffs, the price of rice did not decrease as expected.
Even though the landed price of imported rice dropped by P11 per kilo year-on-year, domestic prices increased from P51 to P55.30 per kilo, revealing inefficiencies in the market.
Moreover, the gap between the landed and domestic prices widened significantly, from P3 per kilo in 2023 to P20 per kilo in 2024, suggesting possible manipulation or inefficiencies in the supply chain.
Speculative behavior was also noted, including reports from the Philippine Ports Authority about 800 containers of overstaying rice imports in September 2024, potentially indicating hoarding.
Additionally, the country is expected to import up to 5 million metric tons of rice, with traders capitalizing on low tariffs before a potential return to higher rates.
Recent reports indicate that the country’s rice stock inventory stands at 2.5 million metric tons, a 25% increase compared to the previous year.
Given these findings, the committee has pledged to intensify its investigation and ensure the implementation of stronger measures to guarantee fair pricing in the rice market.
